The boardroom battle which has hit Telecom Italia (TIM) in recent months has come one step closer to resolution following Friday’s shareholder meeting. Majority owner Vivendi, which has been at loggerheads with activist investor Elliott Advisors over the future direction of the telco, was facing defeat in its bid to nominate five new members to the board and opted to withdraw its motion for a reshuffle. Reuters cites TIM chief executive Luigi Gubitosi as saying that Vivendi’s move was ‘courageous’ and a first step towards peace. For its part, Elliott said it looked forward to ‘constructive dialogue with all shareholders,’ while adding that it supports the current CEO, board and management team.
There has been some speculation that state lender Cassa Depositi e Prestiti (CDP), which holds almost 10% of TIM’s shares, could act as a mediator in negotiations between Vivendi and Elliott as the opposing sides work together to hammer out a future strategy for the fixed and mobile operator.